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Massport Files Draft Demand Management Plan With FAA; Program Protects Access to Logan

May 5, 2004

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Draft Demand Management Plan

The Massachusetts Port Authority (Massport) today filed a draft demand management plan for Logan International Airport. The Federal Aviation Administration (FAA) required Massport to submit the draft plan prior to the start of construction of Runway 14/32 as part of the federal approval process. The proposed program seeks to reduce delays at Logan Airport due to high flight volumes in good weather conditions. Logan Airport does not currently experience delays due to high volumes of flights in good weather but has in the past.

With this filing, Massport has met one of its main obligations set forth during the federal and state environmental approval process for a new runway at Logan Airport, said Massport CEO Craig Coy. The proposed plan achieves the dual goals of reducing future delays due to overscheduling and protects access to Logan for small communities throughout New England.

The demand management or peak pricing plan has three key components:

It tracks airline schedules six months in advance, identifying potential delay conditions due to airline overscheduling and providing early warning to airlines so they have an opportunity to modify schedules before delays are caused;
It triggers the program when delays reach 15 minutes on average during good weather conditions and imposes a peak period surcharge; and
It maintains access to Logan for small communities throughout New England.

Massport proposes an initial fee of $150 for arrivals and departures during the peak hours of the day when the program is triggered. The proposed plan allows Massport the flexibility to adjust fees to ensure the ability to continue to reduce delays in the long-term.

At least ten small New England communities have been identified as eligible for an exemption program that would exempt service to and from those communities from the peak period surcharge. The FAA has designated these communities as Essential Air Service Markets to ensure their continued access to the national air transportation system.

Massport expects to initiate the state rulemaking process in June. It is expected that the rulemaking process will include both a written comment period on the proposed program and a public discussion period with public meetings. At the conclusion of the rulemaking process the Massport Board will vote to adopt the peak pricing program.

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